GRC Viewpoint

Industrial AI: The Coming Revolution on Governance, Risk, and Compliance

In the intricate landscape of data management, regulatory compliance, and ethical standards, governance, risk, and compliance (GRC) play pivotal roles for organizations. Enter industrial AI, a powerful force that leverages artificial intelligence within industrial settings, such as in manufacturing, to improve operational decision-making. Industrial AI significantly impacts GRC in various ways, including by improving product quality, optimizing energy usage, minimizing waste, and reducing GHG emission. In this article, we’ll explore how industrial AI is already transforming GRC, its benefits, and the ways organizations are harnessing it to enhance their GRC targets.

Improving Decision-Making and Oversight with AI

Industrial AI automates and augments human tasks, from data collection and processing to analysis and reporting. This reduces much valued time, but as importantly reduces human errors, biases, and inconsistencies. Real-time monitoring and control of industrial systems through AI enable organizations to better achieve their operational excellence goals. This is where Canvass AI software solutions are implemented in several industrial processes to augment decision making and run consistent and reliable operations.

For example, a food ingredient manufacturer running a cogeneration plant powered by natural gas was looking to reduce fuel consumption in their unit as fuel was one of the highest costs. They implemented the Canvass AI Cogen Boiler Optimization solution to forecast and optimize boiler efficiency. The solution was implemented in two stages. In phase 1, the solution provided real-time advisory to plant engineers resulting in 0.7% reduction in energy costs. In Phase 2, the solution was implemented in a closed loop environment with the control systems to provide real-time optimized control. The project yielded results in just 8 weeks, with a gain of 5.09% in thermal efficiency, annual energy savings, and a 4% cut in GHG emissions.

Identifying, Assessing, and Mitigating Risks with AI

Another area in which industrial AI solutions are prominent, is in providing predictive and prescriptive analytics that forecast future outcomes, identifying optimal solutions, and suggesting the best actions for different scenarios. For example, a large North America-based oil and gas company, running one of the largest operations on the continent, is leveraging Canvass AI’s predictive maintenance solution to predict gearbox failures, optimizing its manufacturing capacity, reducing costly downtime, and protecting its assets.

Complying with Regulations, Standards, and Ethical Principles with AI

The recent surge of generative AI has emphasized the need for regulations around privacy and AI use. In February 2024, the European Union adopted the EU Artificial Intelligence Act. Similar legislation is being debated in countries like Canada with the AIDA (Artificial Intelligence and Data Act). While regulations and standards evolve, industrial AI itself can help organizations comply with existing and emerging regulations in their industry.

For example, Canvass AI solutions now integrate with applications like Microsoft Sustainability Manager to automate and streamline the data collection, reporting, auditing, and verification processes required by regulators, reducing time, cost, and effort. It can also enhance the transparency and accountability of AI applications and their outcomes, providing evidence and justifications needed to demonstrate compliance.

Leveraging Industrial AI to Enhance GRC Capabilities

Industrial AI can impact GRC positively, depending on its design, deployment, and use. Manufacturers adopting industrial AI need to be aware of the opportunities and challenges it brings and adopt appropriate governance, risk, and compliance frameworks to ensure trustworthy, ethical, and beneficial AI use.

By understanding these opportunities and challenges, organizations can leverage industrial AI to enhance their GRC efforts, driving business growth and innovation. As we navigate the AI revolution, the role of GRC in guiding responsible and effective AI use will become increasingly critical.

Keeping in mind that industrial AI creates the opportunity to optimize operations in compliance with regulations already in place, to improve safety and environmental impact, it is therefore essential for GRC professionals to stay informed about the latest AI developments and understand how to leverage them for improved GRC efforts.

By Humera Malik CEO, Canvass AI

Humera Malik is CEO of Canvass AI, a leading provider of industrial AI software that puts industrial companies in control of their data to achieve operational excellence. The company is recognized by CB Insights as one of the top technology companies that is advancing manufacturing. Internationally, Ms. Malik is one of the leading voices in Artificial Intelligence and how it can help the industrial sector propel growth, accelerate sustainability, and augment human expertise. She sits on Canada’s AI Technology Advisory Council and is a recipient of the RBC Women of Influence Entrepreneur of the Year award, the Women of IoT/M2M award, and Special Jury Recognition for the Women in AI Awards North America 2023. She is frequently invited to speak at industry conferences and has been featured in publications such as Bloomberg and Forbes.

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